https://www.keepingcurrentmatters.com/2010/06/09/appraisal-challenges-straight-from-the-battlefield/

Do a quick Google search for blogs regarding HVCC & Dodd Frank and you will find countless stories regarding experienced appraisers who have chosen to leave the lending side of the residential appraisal profession to the new guys. These are people who are intelligent enough to know that the risk is not worth the reward. In my opinion these assignments would not be worth the reward if there were no risk involved.

Few experienced appraisers would be on target in today’s market because we have witnessed nothing similar since the 1930s. Doesn’t take a rocket scientist to figure out that when you turn residential based valuation over to lesser experienced appraisers the market will tank.

From an appraisers perspective, the housing market has been quite complex since late 2008 and become more complex every month because of the leve of foreclosures. Experienced appraisers are needed more than ever in this type of market to provide solid research and credible valuations.

Experienced residential appraisers have been fleeing the business in larger and larger numbers since late 2008. Why? Their experience was rendered worthless in 2009 with the advent of HVCC which continues today under Dodd Frank. The new reverse auction style business model that now exists for hiring appraisers favors the auction house (bank owned AMCs) and the lowest bidders (new appraisers).

Once the entire appraisal profession was handed to green appraisers the future became quite predictable: an accelerating downward spiral of home values and an upward vortex of foreclosures.

Why they are surprised by what they are witnesses is amusing to say the least. This was nothing short of a self fulfilling prophecy.